Bank of America has again named Argenx (NASDAQ:ARGX) and Vertex Pharmaceuticals (NASDAQ:VRTX) as its top large-cap selections for 2026, putting price targets of $1,013 for Argenx and $598 for Vertex.
In its rationale for Argenx, BofA pointed to the commercial strength of Vvygart in generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. The firm noted that expansion of Vvygart into earlier lines of therapy and accumulating real-world experience are supporting the product's performance.
BofA also flagged near-term clinical catalysts for Argenx, highlighting two forthcoming phase 3 readouts. The firm identified results for efgartigimod in myositis expected in the third quarter and for empasiprubart in multifocal motor neuropathy expected in the fourth quarter as potential value-moving events.
For Vertex, BofA emphasized the cash-generating capability of the cystic fibrosis franchise, which the bank said can finance further pipeline development. The report singled out Vertex's rare kidney disease program as a strategic long-term growth area and referenced positive data for povetacicept in IgA nephropathy as supporting evidence for that thesis.
Beyond its large-cap recommendations, BofA listed several small- and mid-cap names across commercial and pre-commercial categories. Among commercial small- and mid-cap picks, the bank selected KalVista Pharmaceuticals (NASDAQ:KALV), assigning a $32 price target, and Rhythm Pharmaceuticals (NASDAQ:RYTM), with a $149 price target.
BofA noted that KalVista's Ekterly received approval in July 2025 as the first on-demand therapy for hereditary angioedema. The bank also pointed to Rhythm's Imcivree, which it said became the first approved therapy for acquired hypothalamic obesity in March.
In the pre-commercial small- and mid-cap cohort, BofA named Ocular Therapeutix (NASDAQ:OCUL) with a $27 price target and Bicara Therapeutics (NASDAQ:BCAX) with a $35 price target as its top selections.
Takeaway - BofA's latest selections emphasize established commercial franchises that provide cash flow to support pipeline investments, while also highlighting upcoming clinical readouts that could act as catalysts for share-price movement. The bank paired large-cap convictions with targeted small- and mid-cap names that have recent regulatory milestones or pre-commercial potential.